New Home Purchase Agreement
THIS AGREEMENT IS SUBJECT TO ARBITRATION PURSUANT TO THE UNIFORM ARBITRATION ACT SECTION 15-48-10, ET.SEQ. CODE OF LAWS OF SOUTH CAROLINA, 1976, AS AMENDED.
Lot#________TMS#_________________________Address__________________________ House Plan: ____________________ Date: _________________________ {R080808} Whereas, Catalyst Builders, Inc., or it’s assigns (hereinafter called “Seller”) is building in a community known as St Johns Crossing, (hereinafter called “Community”), upon a tract of real property located in Charleston, South Carolina; and Whereas, __________________________________________________________, (hereinafter called “Purchaser”) desires to purchase the above house and lot in the Community together with an undivided interest in the common property appertaining thereto (hereinafter collectively called the “Property”); NOW, THEREFORE, in consideration of the premises and other valuable consideration, Purchaser agrees to purchase and Seller agrees to sell the Property on the terms and conditions hereinafter set forth: TERMS AND CONDITIONS 1. PURCHASE PRICE IF BUILDING PERMIT IS ISSUED WITHIIN NINETY (90) DAYS OF THE EXECUTION OF THIS CONTRACT; Base Price of Home: $ ______________________ Lot Premium: $ ______________________ Options and Additions: $ ______________________ Total Purchase Price: Deposits due upon execution of the Agreement: with Options Addendum: at Lot Clearing Balance of Purchase Price to be paid by Purchaser shall be Payable at Closing of Title by Cashier’s Check or Certified Bank Check: $ ______________________ $ ______________________ $ ______________________ $ ______________________
$_______________________
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2. PURCHASE PRICE IF BUILDING PERMIT IS NOT ISSUED WITHIN NINETY (90) DAYS OF THE EXECUTION OF THIS AGREEMENT: The Seller guarantees the price as listed in Item 1 on this Agreement for a period of no more than ninety (90) days from the original date of this Agreement. If a building permit has not been issued on the subject property, it is possible that the price will increase due to a rise in material cost index. Should this increase be necessary, it will be based on the actual portion of the construction that is involved and not the entire project (i.e. If drywall effects a 3% materials cost increase, the price of the house will increase by 3% of the projected cost of the drywall, not 3% of the total cost of the home). If this increased cost causes the Purchaser to be unable or unwilling to complete the terms of this Agreement, Seller will release Purchaser from all obligations of the Agreement and return all deposit monies held less any applicable charges. 3. CLOSING: Closing shall take place within 10 days after Purchaser of said Property is notified that the Seller is prepared to tender title. In the event closing does not occur within 10 days of notification, Seller shall have the option to terminate this contract, or to collect the actual per diem interest cost for each day until closing, starting on the 11th day after the Purchaser of said Property is notified that the Seller is prepared to tender title. This closing date will be following completion of home, which will be approximately one hundred fifty (150) days from the start of framing and will occur at the Law Offices of __________________________ or as the parties hereto shall mutually agree. Completion of home and closing could be subject to a delay of up to three (3) months in the event of unavailability of materials, strike, governmental order, or other events beyond the control of Seller which is not an Act of God. A delay of up to six (6) months could be caused by an act of God. If Seller is unable to complete construction within the above period (together with any permissible extension thereof), Purchaser or Seller may terminate this Agreement and Purchaser shall receive a full refund of all deposit monies held less any applicable charges. 4. CLOSING COSTS: If Purchaser uses one of Seller's Preferred Lenders, said lenders have agreed to pay closing costs totaling 1% of the loan amount. This incentive does not apply to lenders other than Seller's Preferred Lenders. Additionally, Seller shall contribute 1% of the Contract Purchase Price toward Purchaser's closing costs when Purchaser uses one of Seller’s preferred lenders and attorney Lisa Wolff Herbert as settlement agent. Purchaser shall, at closing, pay any additional closing costs over said amounts in addition to any fees owed to the neighborhood homeowners association (which Annual Assessment shall be prorated from the day of closing to the end of the calendar year). Seller shall pay for deed preparation and deed stamps to be placed thereon.
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5. PURCHASER’S FINANCING ARRANGEMENTS: Purchaser acknowledges that Seller, to defray the cost of construction, may use all deposits towards construction. Purchaser’s obligations under this Agreement shall be contingent upon Purchaser obtaining, at Purchaser’s sole cost and expense, a loan to finance the portion of the purchase price set forth in Paragraph 1 hereinabove, which loan shall be secured by a mortgage. Purchaser shall select mortgage lender and notify Seller within seven (7) days of executing this Purchase Agreement. Purchaser may use mortgage lender of their own choosing for final funding, but must provide Seller with a pre-approval letter from one of Seller’s Preferred Lenders within ten (10) days of execution of this Purchase Agreement. Purchaser shall complete and return to his chosen permanent mortgage lender a copy of ratified contract. Failure to return completed application forms to the lender within fourteen (14) days from the date of delivery thereof, shall constitute a default on the part of Purchaser at Seller’s sole option. Within thirty (30) days of executing this Purchase Agreement, the Purchaser shall provide Seller with a copy of his Formal Loan Approval complete with a Commitment Guarantee for a period of at least one hundred and twenty (120) days thereafter. If Purchaser’s credit is not approved as provided above, Purchaser may elect to pay the balance of the purchase price without financing or may elect to finance the balance independently and thereby waive any further financing contingency in this Agreement. Purchaser must notify Seller in writing of such election within five (5) days after receipt of written notice from Purchaser’s lender of disapproval. If Purchaser can not proceed with an alternate source of funding, then Seller and Purchaser will mutually release each other from this Agreement and Seller will return Purchaser’s earnest monies held including any deposit monies for upgrades less the cost of any non-refundable monies paid by Seller for any upgrades. All earnest monies and deposits for upgrades become immediately non-refundable upon receipt of Purchaser’s Formal Loan Approval. Purchaser’s inability to obtain financing for Closing after receipt of Purchaser’s Formal Loan Approval will result in an unconditional forfeiture of all earnest monies and deposit monies paid by Purchaser. Any rate lock agreements that Purchaser chooses to enter into is entirely the Purchaser’s responsibility and no cost shall be borne by Seller. 6. CONSTRUCTION: Seller agrees to construct a residence on the lot, which is substantially the same as the ______________________plan. Seller reserves the right to make reasonable modifications from the plan, which do not materially affect the size of floor plan or the residence or its value. Purchaser acknowledges that changes in location of windows, doors, walks, partitions, utility lead-ins and outlets and electrical boxes may be made to accommodate optional items, location of transformers or the particular configuration of the lot. The terms of the Contract are limited to the provisions contained in this Agreement and the other documents described as follows: a. Schedule A Options and Upgrades Addendum which includes all items, included in the purchase price plus any options or additions, if any, chosen by the Purchaser; b. Outline Specifications, Standard Features, and any Addenda; c. 2-10 Warranty; d. Non-Warrantable Conditions; e. Certificate of Acceptance; f. Other, Covenants and Restrictions. __________Initials/Date__________ 3
7. TITLE: Seller shall convey the Property to Purchaser by Insurable Fee Simple General Warranty Deed with all deed stamps affixed thereto free from all monetary liens and encumbrances and free from all other liens and encumbrances, except the following: a. Pro-rata taxes and assessments, not yet due and payable. Seller will be charged his pro-rata share at closing and therefore Purchaser is responsible for the payment of said taxes during the year of closing. b. All matters which would be revealed by an accurate survey or inspection of the Property. c. Existing easements and easements and restrictive covenants of record, including any shown on recorded plats and all governmental statutes, rules, regulations and ordinances. d. The house and lot will be conveyed subject to the provisions of the Declaration of Covenants, Restrictions, and Easements for St Johns Crossing and the By-laws of St Johns Crossing Homeowners Association, Inc., and any subsequent amendments thereto. e. Deed restriction as set forth in Section 28 and 29 of this Agreement.
8. PURCHASER’S ACKNOWLEDGEMENTS: Purchaser hereby acknowledges that prior to execution of the Agreement, Purchaser has made a personal, on-site inspection of the property. 9. DISCLAIMER: The property being sold may constitute a part of a stage or phase of development, which may result in the construction of additional phases by the Seller or other Developers. The Seller, however, assumes no liability for the construction or completion of any additional phases, their type, style, or use or any other portion or stage of the development. 10. DEFAULT: It is expressly agreed upon the event of any default or failure on the part of the Purchaser to comply with the terms and conditions of this Agreement, then the said deposit, at the option of the Seller, shall be paid to Seller as liquidated damages or Seller may seek other remedies available to it under judicial proceedings, including recovering reasonable attorney’s fees, interest costs, and expenses of said action. 11. NOTICES: Any notice to be given hereunder shall be in writing and delivered in a postage prepaid envelope, sent by registered or certified mail, receipt requested, to the Purchaser and Seller at the following address: Seller at: Catalyst Builders, Inc. 887 Johnnie Dodds Blvd Suite 200 Mt Pleasant, SC 29464
Purchaser at: ________________________________________ ________________________________________
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12. OWNERSHIP OF PLANS AND SPECIFICATIONS: Purchaser has no ownership rights in the plans and specifications used under this Contract. And the Purchaser will be liable to the Seller in the amount of lost profits and all consequential damages for the reuse or resale of these plans. 13. CHANGES IN WORK AND CHANGE ORDERS: No changes in work can be made more than seven (7) days from the Contract ratification date. If the Seller and Purchaser agree on an addition or an alteration and the price thereof within this time period they shall execute a written change order describing the changes to be affected and any changes to the Contract price or completion date. Change orders shall be signed by all parties and become a part of the Contract. The Purchaser agrees to pay directly to Seller or add to purchase price for these changes, before Seller executes Change Order Form and change is made. Any Change Order shall be subject for all terms and conditions of this Agreement. 14. INSPECTION, ACCEPTANCE AND POSSESSION: Purchaser shall be given a reasonable opportunity to examine his Residence and complete the Homeowner Orientation Report with Seller’s representative prior to closing of title, and at that time shall present to Seller the Homeowner Orientation Report signed by Purchaser setting forth any defects in workmanship or materials. As to any items therein described which are truly defects in workmanship and materials (keeping in mind the construction standards prevalent in Charleston County for similar property). Seller shall be obligated to correct the same at its cost within a reasonable period of time, but Seller’s obligation to correct shall not be grounds for deferring the closing nor the imposition of any condition upon closing. Should the Seller, in the sole opinion of the President thereof, determine that it could not satisfy the requirements of the Purchaser for the completion of the improvements or should the Purchaser attempt to delay the closing for completion of punch list items, then the Seller, at its option may void this Contract and refund to the Purchaser the Deposit Money and reimburse the Purchaser for any actual costs expended by Purchaser in processing the loan with which to complete the purchase. If voided, the Seller shall have absolutely no further obligation to the Purchaser. Purchaser agrees not to interfere with or molest any workman at the site of the Property and Purchaser further agrees that any personal inspections shall be made with the consent of the Seller. Prior to the closing, the Purchaser shall execute the Certificate of Acceptance. The Purchaser shall not take possession of the home until execution of this Certificate of Acceptance. All parties agree that this provision is subject to the right of either party to obtain injunction or file any other legal or equitable remedies. 15. REPRESENTATIONS AND WARRANTY: The Limited Warranty attached and incorporated by reference into this Contract contains the sole warranty provided by the Seller to the Purchaser. The Limited Warranty shall have no force and effect until the Seller has received full payment of the purchase price stated above. The Warranty shall take effect at the time of closing. The Limited Warranty excludes all items on the attached statement of non-warrantable conditions that is incorporated by reference into this Agreement. The Seller assigns to the Purchaser, to the extent they are assignable, all rights under manufacturer warranties on appliances, equipment, fixtures, and consumer products included in the house and located on the Purchaser’s property. The Seller provides no other Warranties relating to manufacture or consumer products. _________Initials/Date__________ 5
THIS CONTRACT CONTAINS ALL THE REPRESENTATIONS, WARRANTIES AND PROMISES OF THE SELLER. NO AGENT OR REPRESENTATIVE IS AUTHORIZED TO MAKE ANY REPRESENTATION OR PROMISE ON BEHALF OF THE SELLER OTHER THAN THOSE CONTAINED HEREIN, AND THE SELLER MAKES NO OTHER
WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES TO GOOD WORKMANSHIP AND HABITABILITY. 16. VIEW NOT GUARANTEED: Purchaser acknowledges that their right to a view will stop at their property line. By signing this Agreement, Purchaser acknowledges that Seller makes no representations concerning the future use of adjacent real estate. Purchaser acknowledges that they are aware that there may be dwellings, landscaping, or other improvements in adjacent areas which might interfere with the view of surrounding areas as it exists at the time of the execution of this contract. 17. USE OF ADJACENT LAND: Land adjacent to or surrounding the property which is not owned by Seller is not within Seller’s control. Seller will not be liable to Purchaser for any use or condition of adjacent or surrounding land for commercial, industrial, institutional, multi-family or non-residential purposes. 18. RELEASE OF CLAIMS FOR DAMAGES: Purchaser hereby releases and relinquishes all claims against Seller for damages to property or personal injury arising after the date of this contract relating to any of the following: (1) environmental or ecological conditions or events such as weather conditions, atmospheric conditions, terrestrial conditions, acts of God or other natural or man-made conditions or occurrences, occurring beyond the reasonable control of Seller. (2) consequential damages or expenses resulting from a termination of this Contract or to delays in closing, such as lodging, storage, moving, meals or travel expenses. (3) any claims for repairs or modifications to the Property except as specifically covered by Seller’s limited home warranty. This waiver will be binding upon Purchaser and the heirs, successors, assigns, guests and invitees of Purchaser. Purchaser acknowledges that Seller shall be entitled to rely upon this waiver as a complete defense against any claim asserted by Purchaser or anyone claiming through Purchaser. The deed conveying the property to Purchaser may contain a reference to this waiver. 19. ARBITRATION: All disputes between the parties to this contract arising out of or related to any contract terms, or any breach or alleged breach of this contract will be decided by arbitration unless the parties otherwise mutually agree in writing. No arbitration proceeding under this provision shall include any person or entity not a party to this contract except by written consent. The arbitration shall be conducted by the National Academy of Conciliators in accordance with its expedient home construction arbitration rules. The parties must file a notice of arbitration with the other party to this contract and with the National Academy of Conciliators. The notice of arbitration may not be filed after the date that a claim based on the dispute would have been barred by a judicial proceeding by the applicable __________Initials/Date__________ 6
statute of limitations or repose. Either party may specifically enforce (a) a decision rendered under this to arbitrate or (b) any valid agreement to arbitrate with additional persons under applicable arbitration laws. The award rendered by the arbitrator will be final and binding and any court with jurisdiction over the decision may enter a judgment upon the arbitrator’s decision. 20. DEPOSIT MONEY: Purchaser agrees to pay Seller as deposit money $2,500.00 at signing of the contract, and $2,500.00 upon completion of FRAMING. The Purchaser may elect to pay all $5,000.00 at the signing of the contract. 10% of the calculated cost of the Options and Additions over $1,000 will be payable by the Purchaser upon the completion and signing of the Option Addendum and is Non-Refundable. The purchaser hereby acknowledges that refundable Deposits shall be held in escrow by ______________ and Non-Refundable shall be made payable to Catalyst Builders, Inc. 21. If a CO-OPERATING BROKER/AGENT is representing the Purchaser in this transaction, then a commission of _____ of the final sales price will be paid to the CO-OP Broker at closing. Said CO-OPERATING Broker must have registered the Purchaser with the On-Site Sales Team prior to the Purchaser’s first visit to the Sales Center.
__________________________________________________________________________ Co-operating Broker Company Phone / email 22. OPTIONS AND SELECTIONS: Purchaser understands and agrees options and selections are limited only to items available on “Options & Upgrades” and customer “Customer Selection” forms provided and approved by Catalyst Builders, Inc. Purchaser understands and agrees that any delay of construction due to Purchaser’s deviation from options and upgrades or selection forms will result in additional expense to the Purchaser. Purchaser agrees that failure of Seller to install any of the specified Options & Upgrades will result in a refund of applicable charge, but said failure shall not otherwise affect the Purchase Agreement. Purchaser agrees that selections must be completed 5 days prior to the scheduled Pre-Construction Conference on any pre sale home. Spec sales have 5 days from ratified contract date. Changes made to the DSS Sheet after said date are at the discretion of the Seller and are subject to a minimum $100.00 change order fee per item changed. Purchaser agrees that option and upgrade prices are subject to change at anytime without any notice. 23. ENTIRE AGREEMENT: This Agreement including the documents incorporated in reference pursuant to this Agreement constitutes the entire Agreement between the parties and supersedes all prior or contemporaneous Agreements and understandings whether written or oral. This Agreement may be changed only by written Agreement or Amendment signed by all parties to this Agreement. The Agreement shall be binding upon each of the parties’ respective heirs, executors, administrators, successors, and assigns Each provision of this Agreement is separable from every other provision of the Agreement and if any provision is unenforceable or revised, the remainder of the Agreement will remain valid and enforceable. The Law of Jurisdiction in which the property is located will govern this Agreement. __________Initials/Date__________ 7
The provisions of this Agreement shall survive the execution and delivery of the deed and shall not be merged therein. 24. EFFECTIVE DATE AND SIGNATURES: This Agreement has no force or effect and will not be binding upon the Seller until the Seller accepts it. This Agreement shall become effective on the date designated below or both parties execute the date, whichever is later. 25. NONASSIGNABILITY: This contract shall not be assignable in whole or in part by the Purchaser to any third party without the prior written consent of the Seller. The Seller may withhold consent for any reason. A consent to one assignment by the Seller shall not bar the Seller from denying a subsequent request for assignment. 26. TIME IS OF THE ESSENCE: Time is of the essence as to each and every provision of this Purchase Agreement. 27. CONSTRUCTION OF AGREEMENT: Both Purchaser and Seller acknowledge that they have had ample time to review this Purchase Agreement and to have their respective Attorneys review this Purchase Agreement. Both Purchaser and Seller have read and understand each provision to this Purchase Agreement. Should a court be required to interpret any provision hereof, it is specifically agreed that the court shall not apply the Rule of Construction which would typically interpret or construe the terms of the Agreement more strictly against the drafter of the document. 28. SELLER’S RIGHT OF FIRST REFUSAL: Purchaser and Seller agree that the deed from the Seller shall contain a right of first refusal. Said right of first refusal will automatically terminate six (6) months from the recording of the deed from the Seller to the Purchaser or upon the execution of a waiver of right of first refusal in recordable form. Neither the Purchaser nor any successor owner may transfer or convey the property to a third party without complying with the terms as set forth herein. Purchaser shall notify the Seller in writing of their intent to sell the property to a third party prior to advertising the property for sale. The Seller shall have ten (10) days to either execute a waiver of its right of first refusal in recordable form such that the Purchaser can sell to a third party, or to present the Purchaser with notice of its intent to exercise its right of first refusal. Both the Purchaser and the Seller agree that if Seller elects to exercise this option the price of the home shall be the original sales price plus Ten Thousand ($10,000.00) Dollars. The closing shall occur within thirty (30) days after the delivery of the notice by the Seller exercising its right of first refusal at the offices of Lisa Wolff Herbert Prior to the closing the Purchaser shall be required to pay any and all outstanding assessments against the property, including but not limited to taxes and homeowners association dues. The Purchaser shall be required to remove all title defects prior to the closing. If the Purchaser fails to remove all title defects, the Seller may have such defects removed and shall deduct the costs and expenses incurred by Seller from the repurchase price. The Seller shall pay all closing costs incurred with the repurchase. __________Initials/Date__________
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Seller’s right of first refusal shall be subordinate to any recorded mortgage made in good faith for value securing a bona fide mortgage. Seller’s failure to execute a right of first refusal against the Purchaser or any other party shall not constitute a waiver of such right for future transfers. Purchaser acknowledges that Seller’s right of first refusal shall be evidenced by a restriction that will appear as part of the deed to Purchaser, in order to give third parties notice of Seller’s right of first refusal.
29. Purchaser and Seller agree that the property shall be owner occupied for a period of twelve (12) months from date of closing. 30. BOTH PURCHASER AND SELLER ACKNOWLEDGE RECEIVING, READING, AND UNDERSTANDING THE SOUTH CAROLINA REAL ESTATE COMMISSION’S AGENCY DISCLOSURE FORM. 31. Contract is contingent upon builder obtaining a permit for said lot, if the builder is unable to build on proposed lot, the builder may terminate contract and refund all earnest money back to buyer with no liability to builder.
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We, the undersigned, have read and understand and agree to each of the provisions of this contract and hereby acknowledge receipt of a copy of this contract.
Witnesses: __________________________
Purchasers: ______________________________
______________________________ Social Security Number __________________________ ______________________________
______________________________ Social Security Number
Mailing Address: _________________________________________________________ Home Phone: ________________________________ Office Phone: ________________________________
Sellers: Catalyst Builders Inc. By: ________________________________________ Date: _________________________
Agent: Carolina One New Homes Division By: ________________________________________ Date: __________________________
Target Closing Date_____________________
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